Sri K P Ghanshyam vs State Of Karnataka

-1- NC: 2025:KHC:30984 CRL.P No. 6733 of 2025 C/W CRL.P No. 6677 of 2025

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 11TH DAY OF AUGUST, 2025

BEFORE THE HON'BLE MS. JUSTICE J.M.KHAZI CRIMINAL PETITION NO. 6733 OF 2025 (439(Cr.PC) / 483(BNSS)) C/W CRIMINAL PETITION NO. 6677 OF 2025

IN CRL.P No. 6733/2025

BETWEEN:

SRI K P GHANSHYAM S/O LATE K. L. A. PADMANABHASA, AGED ABOUT 53 YEARS, R/AT NO. 9 AND 9/1, SHESHADRI ROAD, BENGALURU-560009 (NOW IN JUDICIAL CUSTODY ...PETITIONER (BY SRI.D.R.RAVISHANKAR, SR.COUNSEL FOR SRI. SUNIL Digitally KUMAR S, ADVOCATE) signed by REKHA R AND: Location: High Court of 1. STATE OF KARNATAKA Karnataka BY SHESHADRIPURAM P.S. REPRESENTED BY STATE PUBLIC PROSECUTOR, HIGH COURT BUILDING, BENGALURU - 560001

2. SRI. BRIJMOHAN K. S. S/O K. L. SWAMY, AGED ABOUT 46 YEARS, R/A M/S. KHODAY RCA INDUSTRIES, -2- NC: 2025:KHC:30984 CRL.P No. 6733 of 2025 C/W CRL.P No. 6677 of 2025

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(KHODAY ESWARASA & SONS) NO. 11, RACE COURSE ROAD, OPP. TO RAILWAY DIVISIONAL OFFICE, BENGALURU-560009 ...RESPONDENTS (BY SRI.VINAY MAHADEVAIAH, HCGP FOR R1; SRI.P.P.HEGDE, SR.COUNSEL FOR SRI.VENKATESH SOMAREDDI, ADVOCATE FOR R2 V/O DTD: 22.05.2025)

THIS CRL.P IS FILED U/S 439 CR.PC (FILED BY 483 OF BNSS) BY THE ADVOCATE FOR THE PETITIONER PRAYING TO ENLARGE THE PETITIONER/ACCUSED NO.1 ON REGULAR BAIL IN CRIME NI.8/2021 REGISTERED BY SHESHADRIPURAM P.S FOR OFFENCES P/U/S 120B, 406, 408, 409, 420, 465, 468, 471 R/W 34 OF IPC WHICH IS NOW PENDING ON THE FILE OF III ADDITIONAL CHIEF JUDICIAL MAGISTRATE AT BENGALURU IN C.C.NO.21893/2022 ON SUCH TERMS AND CONDITIONS.

IN CRL.P NO. 6677/2025

BETWEEN:

SRI SAHASRARJUN GHANSHYAM KHODAY S/O K.P GHANSHYAM, AGED ABOUT 32 YEARS, R/AT NO.9/1, SHESHADRI ROAD, BENGALURU-560009 (NOW IN JUDICIAL CUSTODY) ...PETITIONER

(BY SRI.SHYAM SUNDAR, SR.COUNSEL FOR SRI.LAKSHMI KANTH.G, ADVOCATE) AND:

1. STATE OF KARNATAKA BY SHESHADRIPURAM P. S. REPRESENTED BY STATE PUBLIC PROSECUTOR, -3- NC: 2025:KHC:30984 CRL.P No. 6733 of 2025 C/W CRL.P No. 6677 of 2025

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HIGH COURT BUILDING, BENGALURU-560001

2. SRI. BRIJMOHAN K. S. S/O K. L. SWAMY, AGED ABOUT 46 YEARS, R/A. M/S. KHODAY RCA INDUSTRIES, (KHODAY ESWARASA AND SONS) NO. 11, RACE COURSE ROAD, OPP. TO RAILWAY DIVISIONAL OFFICE, BENGALURU-560009 ...RESPONDENTS

(BY SRI.VINAY MAHADEVAIAH, HCGP FOR R1; SRI.P.P.HEGDE, SR.COUNSEL FOR SRI.VENKATESH SOMAREDDI, ADVOCATE FOR R2) THIS CRL.P IS FILED U/S 439 CR.PC (FILED U/S 483 BNSS) BY THE ADVOCATE FOR THE PETITIONER PRAYING TO ENLARGE THE PETITIONER / ACCUSED NO.6 ON REGULAR BAIL IN CR.NO.8/2021 REGISTERED BY SHESHADRIPURAM P.S., FOR OFFENCE P/U/S 120B, 406, 408, 409, 465, 468, 471, 420 R/W 34 OF IPC, WHICH IS NOW PENDING ON THE FILE OF III ADDL. CJM AT BENGALURU IN C.C.NO.21893/2022.

THESE PETITIONS, COMING ON FOR DICTATING ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MS. JUSTICE J.M.KHAZI -4- NC: 2025:KHC:30984 CRL.P No. 6733 of 2025 C/W CRL.P No. 6677 of 2025

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COMMON ORDER

These two petitions are filed under the Section 439

of the code of criminal procedure seeking bail in

C.C.No.21893/2022, on the file of III ACMM, Bengaluru,

arising out of Cr.No.8/2021 of Sheshadripuram PS for the

offences punishable and Sections 120-B, 406, 408, 409,

420, 465, 468, 471 r/w Section 34 IPC.

2. While Crl.P.No.6733/2025 is filed by accused

No.1, Crl.P.No.6677/2025 is filed by accused No.6, who is

no other than the son of accused No.1.

3. For the sake of convenience, parties are

referred to by their ranks before the trial Court.

4. In support of the petition, accused Nos.1 and 6

have contended that accused Nos.1 and 2 are the partners

of Khoday Eshwarsa and sons. A deed of reconstitution of

partnership dated 31.05.2017 was executed in Khoday RCA -5- NC: 2025:KHC:30984 CRL.P No. 6733 of 2025 C/W CRL.P No. 6677 of 2025

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Industries, operating at Building No.11, Opposite to

Railway Division Office, Race Course Road, Bangalore City.

Accused Nos.1 and 2, CWs-1 to 6 are the partners among

others. The other partners of the company had given

accused No.2 the authority to conduct the business relating

to Khoday RCA Industries by opening current account

number 0402201052375, at Canara Bank, Avenue Road

branch. Similarly, accused No.1 holds the responsibility

relating to the production, sale, and purchase of the units

and accused No.6, hold the responsibility for finance.

Accordingly, accused Nos.1, 2 and 6 are engaged in the

business of manufacturing liquor products in Khoday RCA

Industries and selling them through KSBCL.

5. Accused No.3 is the owner of Devagiri Bulk

Carriers and Devagiri Enterprises, which was supplying

spirit on contract basis to Khoday India Ltd and Khoday

RCA Industries company belonging to M/s Khoday

Eswarasa and Sons. Accused No.4 is employed as Manager -6- NC: 2025:KHC:30984 CRL.P No. 6733 of 2025 C/W CRL.P No. 6677 of 2025

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since 30.03.1994 at Khoday RCA industries. Accused No.5

is the mother of accused No.3. They are the

owner/Proprietor of a company named Sri.Surabhi

Enterprises, which according to the prosecution, created

with intention of making illegal money.

6. It is alleged that accused Nos.1, 2 and 6 with an

intention of deceiving the partners of Khoday RCA

Industries i.e, CWs-1 to 6 and three other partners, by

betraying the trust of the other partners entered into a

conspiracy to earn illegal money. Accused No.1 entered

into an IMFL Promotional Agreement dated 19.07.2017

with accused No.3 to increase the sale of products like XXX

rum, sovereign pure brandy, Hercules Old mature 3X Rama

and similar other products of Khoday RCA industries

through KSBCL depot. However, accused No.3 on the

instructions of accused Nos.1, 2, 4 and 6, with the help of

CW-16 and using his mother's (accused No.5's) documents

got GST registered under the name of Surabhi Enterprises -7- NC: 2025:KHC:30984 CRL.P No. 6733 of 2025 C/W CRL.P No. 6677 of 2025

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on 03.08.2017. In order to manage the financial affairs of

the said Surabhi Enterprises, the following accounts were

opened.

i. Corporation Bank, Salagame Road, Hassan

bearing A/c No.:510101003283590

ii. ICICI Bank, Hassan bearing A/c

No:105905015862

iii. Karnataka Gramin Bank, Hassan bearing A/c

No:12062110000157

6.1 It is further alleged that accused Nos.3 and 5 have

not employed any workers nor carrying out any marketing

promotion of liquor products of Khoday RCA Industries in

any part of Karnataka and the same is registered just for

name sake and is a company without registered office.

6.2 It is alleged that though Sri. Surabhi Enterprises

was in the name of accused No.5, accused Nos.1 to 4 and 6

with an intention to make illegal gain, on various dates

between 19.08.2017 to 07.08.2020, have a created invoice

summaries, debit note, invoice, debit note (Incentive), -8- NC: 2025:KHC:30984 CRL.P No. 6733 of 2025 C/W CRL.P No. 6677 of 2025

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Invoice debit note (TA and DA), Employees invoice, vehicle

and transportation expenses, bills and other fake invoices

and created documents bearing seal of accused No.3's

signature and got illegally transferred a sum of Rs.17.73

Crores from account No:40220105376 to the above

referred three different accounts of Sri.Surabhi Enterprises.

Out of the said amount, 20% was given to accused Nos.3

and 5 and on various dates, 80% was self drawn by

accused No.3 upon the directions of accused No.1 and the

same was received by accused No.1 through accused No.4

and thereby they have breached the trust of their partners

viz, CWs-1 to 6 and other partners.

7. Accused No.1 and 6 are in custody since the date

of their arrest i.e., from 26.01.2025 4.30 p.m at Delhi.

They filed bail application on 27.01.2025 before the III

Addl.Chief Judicial Magistrate, Bengaluru in

C.C.No.21893/2022. The same came to be rejected on

22.02.2025. Aggrieved by the same, they approached -9- NC: 2025:KHC:30984 CRL.P No. 6733 of 2025 C/W CRL.P No. 6677 of 2025

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LXVII Addl.City Civil and Sessions Court in

Crl.Misc.No.1941 and Crl.Misc.1942/2025. They were

rejected on 08.04.2025.

8. Being aggrieved by the rejection of bail application

filed by them, accused Nos.1 and 2 have filed this petition

on the following among other:

GROUNDS

i. Accused Nos.1 and 6 have not at all committed the

alleged offences and the same is just a fabricated and

concocted story to harass them and wreck vengeance and

rope in them in a non-bailable offence. The alleged offence

has taken place in between June 2017 to August 2020.

There is inordinate delay in filing the complaint without any

explanation. As a counter blast to the complaint filed by

accused No.2, the father of accused No.1, which was

registered in Cr.No.26/2021, this complaint is filed.

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ii. Respondent No.2 Brijmohan K.S, is no other than

the cousin of accused No.1. There is civil dispute between

the parties and suit for partition is pending. To take

advantage in the civil suit, it is being given criminal colour.

The respondent police hand in glow with respondent No.2

has registered the case to pressurize the accused persons

to settle the matter and to take unfair advantage. More

than 15 civil disputes are pending between the accused

No.1 and respondent No.2 before multiple forums,

including the Supreme Court. There are no material to

attract the provisions for which it is filed.

iii. In the present case, the amount in dispute is

Rs.17.73 Crores. The dispute revolve around members of

the family and the State is not in anyway affected. The sole

intention of respondent No.2 is to keep accused Nos.1 and

6 behind the bar due to the family enimity. The whole

dispute relates to a partnership firm. The parties to the

present dispute belongs to the same family and are

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cousins. In fact, during the proceedings in

Spl(Crl)No.5391/2025, the Hon'ble Supreme Court

suggested the parties to sit across and settle the matter.

The entire case is based on documentary evidence like

books of account and ledgers. Accused No.1 is suffering

from ill health, including heart ailment. Already

investigation is completed and charge sheet is filed and

therefore there is no impediment to grand bail. The charge

sheet consists of 17 volumes, 3847 pages and 110

witnesses. It may take very long to conclude the trial. No

purpose would serve by keeping the accused Nos.1 and 6

in custody. They are law abiding citizens and ready to

abide by any conditions that may be imposed and hence

the petition.

9. In support of his arguments, learned Senior

counsel representing accused Nos.1 and 6 has relied upon

the following decisions:

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(i) Sanjay Chandra Vs. CBI (Sanjay Chandra)1

(ii) Arnab Manoranjan Goswami Vs. State of Maharashtra and Ors (Arnab Manoranjan Gowsami)2

(iii) Satender Kumar Antil Vs. CBI (Satender Kumar Antil)3

(iv) Manish Sisodia Vs. ED (Manish Sisodia)4

(v) Radheyshyam Sharma Vs. State of Rajasthan (Radheyshyam Sharma)5

(vi) Musheer Alam Vs. State of U.P (Musheer Alam)6

(vii) Velji Raghavji Patel Vs. State of Maharashtra (Velji Raghavji Patel)7

(viii) Delhi Race Club (1940) Ltd & Ors Vs. State of UP (Delhi Race Club)8

(ix) Doraiswamy Vs. State of Madras 9 (Doraiswamy)

(x) Sowmya Parameswaran Vs. A.A.Shahul Hameed (Sowmya Parameswaran )10

(xi) Prabir Purkayastha Vs. State (NCT of Delhi) (Prabir Purkayastha)11

1 (2012) 1 SCC 40 2 (2021) 2 SCC 427 3 (2022) 10 SCC 51 4 (2024) SCC Online SC 1920 5 SLP Crl.No.3838/2025 6 2025 SCC Online SC 116 7 1964 SCC Online SC 185 8 (2024) 10 SCC 690 9 Crl.P.No.10969/2017 Dt:25.04.2019 10 Crl.P.No.922/2022 Dt:23.08.2022 11 (2024) 8 SCC 254

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(xii) N.V.Subba Rao Kesavarapu Vs. T.Yeshwanth Rao (N.V.Subba Rao Kesavarapu)12

(xiii) Shekhar Prasad Mahto @ Shekhar Kushwaha Vs. the Registrar General, Jharkhand High Court and Anr. (Shekhar Prasad Mahto)13

(xiv) Satender Kumar Antil Vs. CBI (Satender Kumar Antil)14

(xv) Vihaan Kumar Vs. State of Haryana and Anr.

(Vihaan Kumar)15

(xvi) Kasireddy Upendra Reddy Vs. State of Andhra Pradesh and Ors. (Kasireddy Upendra Reddy)16

10. On the other hand, learned counsel representing

respondent No.2 and learned High Court Government

Pleader for respondent No.1 State would submit that

respondent No.2/complainant is the partner of M/s Khoday

Eshwarsa and sons operating under the trade name Khoday

RCA Industries. It is into the business of manufacturing

Indian made foreign liquor since about 60 years. Khoday

RCA Industries is the license holder. Accused No.2 along

12 Crl.P.No.1713/2022 Dt:30.04.2025 13 W.P(Crl)No.55/2025 Dt:07.02.2025 14 (2022) 10 SCC 51 15 (2025) 5 SCC 799 16 2025 SCC Online 1228

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with father of complainant K.L.Swamy are among the other

Directors and authorized signatories to operate the bank

accounts including Canara Bank, Avenue Road Branch A/c

No.0402201052375. While business operations of Khoday

RCA Industries is managed by 11 partners, accused Nos.1

and 2 are primarily entrusted with the day-to-day

operations and general administration of the business,

including manufacture, marketing, sales, collections and

finances. They are responsible for identifying and release of

payments to various service providers and suppliers of raw

materials.

10.1 Accused No.1 K.P.Ghanasham was entrusted to

take decisions in respect of every single payment to be

made for Khoday RCA Industries and approve or

disapprove the same. His father accused No.2

K.L.A.Padmanabhasa was authorized to release payments.

During August 2020, several complaints were received

regarding non supply of products. Even though since

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January 2017 upto August 2020, a sum of Rs.17.73 Crores

is shown as expenditure towards promotional and

marketing activities, as per invoices raised by one

Sri.Surabhi Enterprises, claiming TA and DA, expenses and

vendor/supplier incentives, it was found that the bills had

no signature except a stamp and there were no supporting

documents, details of the sale executives, etc. It was

evident that there was a major fraud played by Sri.Surabhi

Enterprises through accused No.3 Dharmendra and others.

The bills approved by accused No.1 K.P.Ghanamsham on

the face of it looked false and fabricated. On the basis of

such documents, the payments were made by accused

No.2 K.L.A.Padmanabhasa.

10.2 Accused No.4 Ramachandra Singri, who is

working as Manager is the main co-ordinator for all the

transactions with Sri.Surabhi Enterprises and accused No.3

Dharmendra. A transaction audit reveal that there were

huge irregularities to the tune of Rs.17.73 Crores. The

documents are fabricated. No promotional activities were

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held. The documents were created to siphon of and

misappropriate funds from the firm. Feed back from the

500 retailers confirmed that there are no promotional and

marketing activities since 4 years. Sri.Surabhi Enterprises

is not having an office and it is only a place of residence.

Accused No.3 Dharmendra is only a transporter of spirit

who operates few tankers including those of the firm in the

name and style of Devagiri Enterprises and Devagiri Bulk

and Carriers. After the fraud was deducted in September

2020 and enquiries were made, the accused have stopped

raising bills. All the accused have conspired to

misappropriate and commit fraud and caused loss of

Rs.17.73 Crores to the firm and other partners and made

unlawful gain.

10.3 In this regard complaint is filed. Based on the

same, case is registered and investigation is taken up.

After detailed investigation, charge sheet is filed. Since the

investigating officer failed to conduct proper investigation

by arresting the accused persons, petitions were filed for a

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direction to conduct further investigation. As per the

directions given by this Court, accused Nos.1, 2 and 6 were

arrested and based on the further investigation, additional

charge sheet is filed. The allegations made are very grave.

In the event of granting of bail, there is likelihood of

petitioners threatening and tampering the witnesses and

pray to dismiss the petitions.

11. In support of his arguments learned counsel for

respondent No.2 has relied upon the following decisions:

(i) State of Bihar Vs. Amit Kumar (Amit Kumar)17

(ii) Y.S.Jagan Mohan Reddy Vs. CBI (Y.S.Jagan Mohan Reddy)18

(iii) Satyendrer Kumar Jain Vs. Directorate of Enforcement (Satyender Kumar Jain)19

(iv) Tarun Kumar Vs. Assistant Director

(Tarun Kumar)20

(v) State of UP Vs. Gayathri Prasad Prajapati (Gayathri Prasad Prajapati)21 17 (2017) 13 SCC 751 18 (2024) 6 SCC 715 19 2023 SCC Online SC 1486 20 (2022) 10 SCC 51

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12. Heard arguments of the learned Senior counsel

representing accused Nos.1 and 6 as well as respondent

No.2/defacto complainant. Also heard learned High Court

Government Pleader representing the State and perused

the record.

13. The undisputed facts are that respondent No.2

and accused Nos.1 and 6 are members of the same family.

They are the partners of M/s Khoday Eshwarasa and Sons,

operating under the trade name Khoday RCA Industries

('KRCAI' for short). The firm is in the business of

manufacture and sale of Indian made foreign liquor (IMFL)

since about 60 years. KRCAI is the excise license holder.

Since the year 2002 this unit is lease to Khoday India Ltd

(KIL) which is the flagship company of Khoday group.

14. It is also not in dispute that KIL being the

flagship company of Khoday group, is into several other

21 (2022) 15 SCC 515

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businesses, while distilleries is its core business. The

finances of all the business divisions are managed under

this flagship company. Accused No.2 K.L.A. Padmanabhasa

along with K.L.Swamy, the father of respondent No.2 are

among the other Directors in the company who are

authorized signatories to operate the Bank accounts

including A/c No.0402201052375 of Canara Bank, Avenue

Road branch, Bengaluru, which is stated to have been

closed after the fraud came to light.

15. It is also not in dispute that while the business

operations of KRCAI is managed by all the 11 partners,

accused No.2 K.L.A Padmanabhasa and his son accused

No.1 K.P.Ghanasham were primarily entrusted with day-to-

day operations and general administration of the business,

including manufacturing, marketing, sales, collections and

finance. They were responsible for identifying and release

of payments to various service providers and suppliers of

raw material. Accused No.1 was entrusted to take decisions

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in respect of every single payment made for KRCAI and

approve or disapprove the same and accused No.2 K.L.A

Padmanabhasa was authorized to release the payments.

16. It is alleged that in the month of August 2020,

several complaints were received from the retailers

regarding non supply of the products and no promotional

activities. However, it was found that in all a sum of

Rs.17.73 Crores were spent towards promotional and

marketing activities, as per the invoices raised by

Sri.Surabhi Enterprises, claiming commission, TA and DA

expenses and vendor/supplier incentives. These bills were

not signed and not supported by any documents.

17. It is further alleged that a major fraud is

committed by Sri.Surabhi Enterprises through accused

No.3 Dharmendra and the said bills were approved by

accused No.1 Ghanasham without any supporting

documents and payments were approved by accused No.2

K.L.A Padmanabhasa and accused No.4 Ramachandra

Singri was the Manager. A transaction audit was initiated. A

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document called as IMFL promotional agreement purported

to have been entered into between KRCAI represented by

accused No.1 Ghanasham as partner Sri.Surabhi

Enterprises represented by accused No.3 Dharmendra as

an authorized representative. However, no promotional

activities were held. Only based on fabricated documents,

amounts were drawn. There is also no office of Sri.Surabhi

Enterprises. Accused No.3 Dharmendra is only a

transporter of spirit who operates few tankers, including for

the firm, through entity known as Devagiri Enterprises and

Devagiri Bulk Carriers. Suspecting fraud and irregularities

respondent No.2 filed the complaint, it was registered in

Cr.No.8/2021 against accused Nos.1 to 5. After detailed

investigation, charge sheet came to be filed for the

offences punishable under Sections 120-B, 406, 408, 465,

468, 471, 420 and 201 r/w Section 34 IPC.

18. After conducting further investigation, the

concerned police have filed additional charge sheet

including the offence punishable under Section 409 IPC.

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19. It is pertinent to note that at the end of the

charge sheet, a note is made by the investigating officer

(Sri.Chandan Kumar N, Assistant Commissioner of Police)

to the effect that accused Nos.1, 2, 4 and 6 are absconding

and after their arrest and recovery of documents and

instruments for preparing the fake documents, additional

charge sheet would be filed under Section 173(8) of Cr.P.C.

20. Before going to the discussion as to whether

accused Nos.1 and 6 are entitled for bail, it is necessary to

refer to some of the proceedings held before various

Courts.

(i) On 12.07.2021, in Crl.P.No.2493/2021, Co-

ordinate Bench of this Court has rejected the petition filed

by accused No.1 Ghanasham for anticipatory bail.

(ii) In W.P.No.7294/2021, respondent No.2/

complainant approached this Court for a direction to the

Government to constitute a special team of investigating

officers to conduct further investigation and take steps to

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arrest the accused persons and to recover incriminating

material. When it came up for orders, a submission was

made by learned High Court Government Pleader that as

per the request of respondent No.2 to the Commissioner of

Police, the investigating officer is changed and in the light

of the said submission, on 17.08.2021, the said petition

came to be disposed of with a direction to the Government

to consider the representation of respondent No.2 to see

that the investigation is conducted fairly and properly.

(iii) Respondent No.2/complainant filed Civil

Contempt Petition No.902/2021, alleging willful

disobedience of directions given in W.P.No.7294/2021

dated 17.08.2021. The contempt proceedings were

dropped on 17.02.2022 after making an observation that

the new investigating officer has taken charge and

submitted action taken report even before the orders were

passed in W.P.No.7294/2021.

(iv) The respondent No.2/complainant also filed

W.P.No.16631/2022 against State Government and other

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officials as well as accused No.1 Ghanasham, with a prayer

for direction to the concerned police officials to execute

non-bailable warrant against accused No.1 Ghanasham. In

turn accused Nos.1, 2 and 6 filed W.P.No.16991/2022 to

quash the criminal proceedings initiated against them in

Cr.No.8/2021. By a common order dated 10.01.2025, the

Co-ordinate Bench of this Court allowed the petition filed by

respondent No.2 and dismissed the petition filed by

accused Nos.1, 2 and 6.

(v) Accused Nos.1 and 6 approached this Court in

Crl.P.No.13878/2024 for anticipatory bail. Vide order dated

25.01.2025, the said petitions came to be dismissed.

(vi) Vide order dated 22.02.2025, the trial Court has

rejected the regular bail applications filed by accused No.1

Ghanasham and accused No.6 Sahasrarjuna.

(vii) In Crl.Misc.1941/2025, vide order dated

08.04.2025, the Sessions Court has rejected the bail

application filed by accused No.1 Ghanasham.

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(viii) Against the said order accused approached the

Hon'ble Supreme Court in SLP(Crl)No.4790/2025. It came

to be dismissed on the ground that already accused are

arrested and as such the petition has become infructuous.

21. In the meanwhile, accused No.2 who was aged

82 years died.

22. Through the present petitions, accused Nos.1 and

6 are seeking regular bail, by contending that the

investigation is completed and charge sheet and additional

charge sheet are filed. No longer their custodial presence is

required. They would undertake to abide by any conditions

that may be imposed.

23. It is submitted on behalf of respondent No.2 that

petitioners are highly influential. The maximum punishment

that could be imposed for the offence under Section 409

IPC is imprisonment for life. In the event of granting bail,

petitioners may threaten or tamper with the witnesses and

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also abscond and thereby protract the proceedings and

pray to reject the petitions.

24. On the other hand, it is submitted on behalf of

petitioners that in fact, during investigation, the petitioners

and other accused appeared before the investigating officer

and cooperated in the entire investigation. Since their

presence was not required, they were not arrested, but in

the charge sheet instead of stating that they are not

arrested, it is shown that they are absconding.

25. At the outset it is relevant to note that accused

Nos.1 and 2, CWs-1 to 6 are partners of Khoday Eshwarasa

and Sons. Accused No.6 Sahasrarjuna is the son of accused

No.1 Ghanasham. As rightly submitted by the learned

Senior counsel representing the petitioners, in their

capacity as the partners, petitioners are also owners of the

properties and business of the partnership firm and entitled

for a share the profits and losses. If at all they are guilty of

misappropriation of Rs.17.73 Crores as alleged in the

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charge sheet, the said amount is liable to be adjusted as

against the profits which they are entitled. Of course there

is element of criminality attached to the alleged action

taken by them, which would be taken care by the trial

Court.

26. At the same time, it is also relevant to note that

even before respondent No.2 choose to file the complaint,

accused No.1 Ghanasham has filed a complaint on

05.02.2021, in Cr.No.26/2021 of Upparpet P.S against

respondent No.2 Brijmohan, his two brothers and father. It

is alleged that the accused persons have entered into a

joint development agreement with Prestige Knotting Hills

Company for development and construction of Flats in land

measuring 36 acres, including in Sy.No.31/2 (old No.31)

and other survey numbers and also land situated at

Konanakunta belonging to the company/partnership on

behalf of all the partners, with an understanding that the

proceeds would be shared amongst the partners. However,

out of 850 Flats, they have sold 500 Flats and failed to pay

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Rs.1000 Crores towards the share of accused No.1

Ghanasham. On 02.02.2021, at 9.30 a.m, when accused

No.1 Ghanasham, his father K.L.A. Padmanabhasa, wife

Jayalakshmi @ Neeta and son accused No.6 Sahasrarjuna

went to the house of respondent No.2 and others to speak

regarding the said dispute, they were abused and threat

was given to their life.

27. Based on this complaint, the concerned police

have registered a case in Cr.No.26/2021. However, later

they have filed 'B' report on the said complaint.

28. It is pertinent to note that accused No.2 has filed

private complaint in PCR.No.6701/2021. It is referred to

the concerned police i.e., Commercial Street PS for

investigation under Section 156(3) of Cr.P.C and registered

in Cr.No.46/2021.

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29. Suit for partition in O.S.No.2035/2019 and

O.S.No.4709/2019 are pending.

30. Thus, basically the dispute is between the family

members who are running a business in the name and

style of KRCAI. It appears together they were facing the

entire world and now after falling out, they are against

each other. Though the offences alleged are non-bailable,

they are not exclusively punishable with death or

imprisonment for life and as such there is no impediment

to grant bail, especially when the investigation is completed

charge sheet and additional charge sheet are filed. The

nature of allegations made against the accused persons are

such that the entire evidence against them is available with

respondent No.2 and the company and the witnesses are

no other than their employees and also the retailers.

31. It is the apprehension of prosecution and

respondent No.2 that the petitioners are very powerful and

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they may tamper with the witnesses. At the same time,

respondent No.2 is far more powerful and he would

certainly balance the pressure that may be exerted by the

accused persons to influence the witnesses, especially

when they are the employees and sellers of the liquor

manufactured by the company. The fact that there is

possibility of the petitioners threatening or tampering with

the witnesses is not a justification for refusing bail to them.

At the same time, petitioners are having heavy stake in the

business run by the company. Such being the case, there is

no possibility of they absconding. The apprehension of the

prosecution that petitioners may threaten or tamper with

the witnesses and also abscond may be over come by

imposing stringent conditions.

32. In the result, the petitions succeed and

accordingly, the following:

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ORDER

Crl.P.No.6733/2025 and Crl.P.No.6677/2025 are

allowed. Petitioners/accused Nos.1 and 6 are released

on bail with the following:

CONDITIONS

(i) Accused Nos.1 and 6 shall execute personal

bond for Rs.10,00,000/- (Rupees Ten

Lakhs only) each, with two sureties each

for the like sum.

(ii) They shall not threaten or tamper with the

witnesses either directly or indirectly nor

shall they abscond.

(iii) They shall not leave the country without

the permission of the trial Court.

(iv) They shall furnish their residential address

proof and shall inform the trial Court, if

there is any change in the address.

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(v) They shall not indulge in any criminal

activities.

(vi) They shall be regular in attending the Court

proceedings.

Sd/-

(J.M.KHAZI) JUDGE

RR List No.: 1 Sl No.: 46